Bitcoin Breaks $3,600, Is February Off To A Good Start?

After the withdrawal of the Chicago Board Options Exchange, as we can see in our bitcoin news today, the price of Bitcoin increased by nearly 2% reaching $3,656.

The lack of some major price movement after an event such as the CBOE withdrawal demonstrated a low-level trading activity and therefore traders expect to see another wave of high volatility in the Bitcoin price and they are even expecting it to again increase in the following days.

Since the start of January, BTC’s price remained stable in a low range between $3,400 to $4,000 and had trouble breaking out of the key resistance point but didn’t fall below the crucial support level either.

However, the lower highs of Bitcoin recorded over the past few weeks show that there is low momentum for the major cryptocurrency. BTC’s price has a tendency to express volatility after a period of long stability and that’s why traders expect for the price to demonstrate wild price movements with the start of February.

After a correction or when a bear market ends, Bitcoin has a history of taking a long time to recover and even reach a new all-time high. In 2017 the bull run was boosted by retail traders and investors that got covered by mainstream media which led for the number one cryptocurrency to spike to $19,000.

Investors such as Vinny Lingham suggested that the crypto market could need a little longer time to recover and rebound to all-time high levels. Ethereum’s co-creator Charles Hoskinson pointed out that the crypto market might need another 11 years to fully recover:

‘’It might take 11 years for the crypto industry to recover back to where we were in 2017, but we will be dramatically different ecosystem at that point. We will have millions, even billions of users.’’